Can Ethereum Surpass $3,800 as Whales and Institutions Step Up?

Can Ethereum break $3,800 next as whales and institutions load up?

Ethereum made notable gains above $3,700 on August 5, fueled by increased accumulation from whales and institutional investors. Will it manage to reclaim $3,800 by the end of the week?

Key Takeaways:

Ethereum saw a 5.7% rise, hitting a peak of $3,730 before settling at $3,650.
Whale wallets holding over 10,000 ETH have increased, indicating strong accumulation by large investors.
Institutional interest is also rising, with significant growth in Ethereum-focused funds.
Despite recent gains, Ethereum faces resistance around the $3,800-$3,900 zone and remains susceptible to potential downturns.

On August 5, Ethereum, the top altcoin by market capitalization, surged 5.7%, reaching an intraday high of $3,730 before falling back to $3,650 at the time of writing. This price is currently 148% higher than its low for the year.

This price increase follows an unsuccessful attempt to breach the $4,000 level in late July, where Ethereum faced resistance near $3,900. This rejection was largely due to negative macroeconomic factors that impacted institutional investment and a significant decrease in the total value locked within the Ethereum ecosystem.

The recent upward movement of Ethereum is closely associated with a new wave of accumulation from whales and large organizations. Data from Santiment shows that the number of wallets holding more than 10,000 ETH has noticeably increased in recent days, reflecting a positive sentiment among large holders who are anticipating potential price gains.

On August 4, two newly created wallets purchased nearly 40,000 ETH, valued at around $142 million, according to Lookonchain. The buying momentum escalated on August 5, when three additional wallets collectively acquired another 63,837 ETH worth approximately $236 million.

Overall, 14 new whale wallets have accumulated over 856,000 ETH, with a total value of nearly $3.16 billion within just two days. Such high-volume buying from new addresses often indicates a growing confidence among wealthy investors and institutions, as they typically take long-term positions in anticipation of price increases. This activity is also closely monitored by retail traders, who often view it as a bullish signal.

In addition to whale activity, institutional interest in Ethereum is progressively increasing. Notably, there has been a rise in treasury and structured products that focus on ETH.

A key development is the expansion of the Strategic Ethereum Reserve (SER), which monitors institutional Ethereum holdings across significant funds and asset managers. Six weeks ago, the SER had under $3 billion in assets under management; this figure has now soared to over $10.8 billion, representing 2.45% of Ethereum's total supply, up from just 1% in June.

Adding to this momentum, SharpLink, a gaming firm listed on Nasdaq and a major participant in the SER, added 18,680 ETH worth around $66.63 million to the reserve on August 4. This addition indicates that corporate treasuries continue to view Ethereum as a key long-term asset.

Despite the notable accumulation by whales and renewed interest from institutions, Ethereum lacks the momentum required to decisively break through the $3,800-$3,900 resistance area. New capital has flowed back into the market through whale wallets and treasury entries, but these investments have not yet shifted overall market sentiment significantly.

Last week, Ethereum-focused ETFs experienced outflows totaling $129 million, suggesting that mainstream investors remain cautious amid ongoing macroeconomic uncertainties. Issues such as trade war risks and concerns regarding the U.S. labor market continue to put pressure on riskier assets.

Without a strong narrative or immediate catalyst, the current rally may be vulnerable to potential reversals. Data from CoinGlass indicates that Ethereum is trading near a critical cluster of long liquidation levels between $3,620 and $3,660. This zone is characterized by a high concentration of over-leveraged long positions that could be liquidated if ETH dips further.

If Ethereum fails to maintain its position above $3,650, it could slide into the $3,620-$3,660 pocket, triggering a wave of liquidations. Such a move could amplify selling pressure, driving ETH closer to secondary liquidity areas around $3,580 or even $3,540—levels where additional long positions could be at risk.

On the other hand, should bulls protect the current support level and initiate a short-term recovery, Ethereum might aim for liquidation clusters around $3,730-$3,780. Some analysts remain optimistic, anticipating that Ethereum could recover back to $4,000, supported by positive technical indicators.

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